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UPSC Prelims 2026 GS Paper 1, question 91

Topic: Economy

Q91

Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?

  1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.

  2. Tokenization of real world assets offers 24×724 \times 7 access, promoting financial inclusion.

  3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

Select the answer using the code given below :

  1. (a) 1, 2 and 3Correct answer
  2. (b) 2 and 3 only
  3. (c) 1 and 2 only
  4. (d) 1 and 3 only

Solution.

Answer: (a) 1, 2 and 3

  1. Statement 1 is correct: Real-World Asset (RWA) tokenization converts ownership rights in physical or traditional financial assets (such as real estate, bonds, or commodities) into digital tokens on a blockchain.
  2. Statement 2 is correct: blockchain-based tokenized assets can be traded and settled 24x7 with fractional ownership, lowering entry barriers and promoting financial inclusion.
  3. Statement 3 is correct: fractional RWA tokenization (including regulated frameworks at GIFT IFSC) enables retail and individual investors in India to access high-growth institutional-grade assets.